Riverbed Technology Earnings: Here’s Why Investors are Not Excited Now

Riverbed Technology, Inc. (NASDAQ:RVBD) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.74%.

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Riverbed Technology, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15% to $0.23 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 34.92% to $246.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Riverbed Technology, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.24. It missed the average revenue estimate of $261.15 million.

Quoting Management: ”Non-GAAP revenue grew thirty-eight percent over the prior year and ten percent without the benefit of $52 million contributed by OPNET in the quarter,” said Jerry M. Kennelly, chairman and CEO. “Despite weak government spending and general economic softness impacting results, WAN optimization revenue increased six percent year-over-year,” continued Kennelly. “Our market expanding products outside of WAN optimization and OPNET generated more than 40% year-over-year growth. Over the long-term, we believe our multi-product strategy to deliver unmatched application performance will allow us to accelerate the company’s revenue growth.”

Key Stats (on next page)…

Revenue increased 3.67% from $237.38 million in the previous quarter. EPS decreased 20.69% from $0.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $1.2 to a profit of $1.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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